Contractor Talk - Professional Construction and Remodeling Forum banner

Starting General Contracting. Using all subs? Info?

9.7K views 11 replies 5 participants last post by  Tricard  
#1 ·
Hi all! I've worked over 15 years in the construction business. This included painting, carpentry, light electrical, power washing, driveway maintenance, tile work ect. My last position was a facility operations for an assisted living community which basically hands off for myself and hiring different contractors. I've grown to really love this and have a rapport with a few subs that do really great work for a decent price.

I'm looking to start my own general contracting business but looking to strictly sub out all the work. I would be the go between with owner and contractor. This business would be licensed, insure and bonded as well. I just have a few questions for those in the industry.

#1 what's the markup for my business if I find a seasonal contractor for a home or business (etc snow removal, landscape) ? A one time fee as well?

#2 what would be the best vehicle for this business? Some people said just a simple truck with nice lettering but other said Def a van with letters. I was leaning towards a truck.

#3 any other advice would be great.

I'm pretty seasoned with my construction experience. I have many certs too as well as a associate degree in business from a local community college....
 
#2 ·
Having some experience in handiman type work doesn’t necessarily qualify you to be a GC.

As for what you should charge, if all you are doing is basically acting as a phone book, my suggestion would be “not much”.

Im not sure what exactly you’re bringing to the table, besides a phone call. That isn’t a GC.

What you drive while while making phone calls is pretty irrelevant. GCs pick a rig based on the work they do.

A lot of folk come on here and want to be what’s known as a “paper contractor”. Some one who does no hands on work but subs out everything.

Basically a project manager.

That works sometimes for very large projects, with a HIGHLY experienced, in the trades, builder. And believe me, it entails more than calling subs.

As the GC you are responsible for everything on that job. You have to know how to do all the trades, and be able to tell if your sub is doing it right.

As a customer, I would not hire you. I can google subs myself.

As a subcontractor, I would not work for you. I don’t know that you have the experience to run the job efficiently and not cost me money.

As a GC, I will beat you out on projects all the time, because I will run a tighter more efficient operation, and express better knowledge of what going into the project, explain processes, provide options, etc, to the customer. Paper boys can’t really compete with me.
 
#3 ·
The only successful paper contractors I've ever seen were doing extremely high end work. "Money is no object" kind of projects.
As far as markup goes, if you're doing five million a year in gross receipts and netting 20% off the top, life is pretty good. If you're doing $300k a year and keeping 10%, you might as well be a barista.
 
#4 ·
The only successful paper contractors I've ever seen were doing extremely high end work. "Money is no object" kind of projects.
As far as markup goes, if you're doing five million a year in gross receipts and netting 20% off the top, life is pretty good. If you're doing $300k a year and keeping 10%, you might as well be a barista.
And then how much of that 10% is going back out in callbacks, warranty work, schedule fkkups, filling gaps, etc., because you lack the knowledge or experience to know what you don't know? (y)
 
#7 ·
Oh I know it can be done. (y)

There is one very successful bigtimer here who is a paper boy. Kind of an open secret, he doesn't really want folk to know he didn't come up through the trades. 🤣

However, it's mostly done by either large companies, who are basically PM firms, or an older guy who just runs the show now and hangs up his bags and has no in house crew. At least out here.


I'm always concerned when a greenhorn with a degree wants to jump right into being a paper boy. I don't see that situation working out so well.

Especially in the smaller residential remodeling scene, I don't understand what exactly these guys think they are bringing to the table?

These guys think that because they managed an apartment complex and called the lawn mower guy for Monday, and the sprinkler repair guy for Tuesday, and called an electrician to replace a receptacle in Mrs. Birkenstellersteins bedroom on Thursday, that this cuts them out to be a GC. :rolleyes::eek:🤣
 
#9 ·
Oh I know it can be done. (y)

There is one very successful bigtimer here who is a paper boy. Kind of an open secret, he doesn't really want folk to know he didn't come up through the trades. 🤣

However, it's mostly done by either large companies, who are basically PM firms, or an older guy who just runs the show now and hangs up his bags and has no in house crew. At least out here.


I'm always concerned when a greenhorn with a degree wants to jump right into being a paper boy. I don't see that situation working out so well.

Especially in the smaller residential remodeling scene, I don't understand what exactly these guys think they are bringing to the table?

These guys think that because they managed an apartment complex and called the lawn mower guy for Monday, and the sprinkler repair guy for Tuesday, and called an electrician to replace a receptacle in Mrs. Birkenstellersteins bedroom on Thursday, that this cuts them out to be a GC. :rolleyes::eek:🤣
My deal is if you wont and can't build why get into this? Easier business for sure out there than GC
Just out of curiosity, you say his guys do the building.

Does he have in house crew at all, or just subs?

Is he doing mostly commercial and industrial, or residential?
100% subs. His two PMs are seasoned builders, nail bangers who know how to schedule, push, be the builder.
 
#10 ·
If I did not have an awesome family business I would definitely I would definitely be a one man show working out of my house building 2 homes a year or doing 2 large renovations et cetera. No small jobs and no employees, sub everything out 100%. I would make a very good living and have much less stress.

Being a truck ass who hung up the bags for the most part and a paper boy are totally different things in my world. I would have no problem at any point in my career putting together a crew and doing good work as long as they could cut straight and nail
 
#12 ·
This post is fun. Not to take anything away from anyone. You do you. My hats off to the guy that picked up a hammer and built a business out of swing it. Some people pick up a business and add a hammer to it. It's really neat to see how things work in the different areas of the country. Again, hats off to all of you for following your dreams, making money, building a business, employing others and making America GREAT. Farmers and builders, every single person in the world NEEDS them. (paper boys too)